FAQs

It is an innovative activity, which aims to solve or mitigate social problems, on the conditions of financial viability and sustainability. The activity combines social and entrepreneurial approaches or, in other words, entrepreneurship and charity. To put it simply, social entrepreneurship suggests finding a business solution to a social problem, with feeling.

While common entrepreneurs usually evaluate their success based on profit (sales) or value of shares, social entrepreneurs also pay attention to positive "social results." Social entrepreneurship usually focuses on solving social, cultural or environmental tasks and in this aspect it comes close to voluntary (non-commercial) activities. Profit may also be taken into account, however not as an end in itself, but as a means to progress in achieving social or cultural objectives of an organisation.

• A trust in every person’s innate ability to make a meaningful contribution to the economic and social development of a society
• A desire to improve the world, and a respect for one’s competitors
• Determination, which allows them to take risks and push beyond traditional boundaries
• A healthy impatience – they cannot be idle and wait for change, but rather want to change the world themselves
• The ability to find uncommon/innovative solutions

The terms social entrepreneurship and social entrepreneur were first mentioned in the 1960-1970s in English-language literature on social changes. They were popularised in the 1980s by the acknowledged American "guru" of social entrepreneurship Bill Drayton, who founded Ashoka, a company dedicated to the finding and fostering of social entrepreneurs worldwide.

Prof. Muhammad Yunus, the founder of Grameen Bank, after receiving the Nobel Peace Prize in 2006, has become, without exaggeration, a cult and central figure in the world of social entrepreneurship. Many initiatives are linked to him, including the Social Business Day, held since 2010 in a number of countries on 28 June, Yunus' birthday.

I have a stable business, however when I got engaged in social entrepreneurship its financial situation worsened dramatically. How can a business be turned into a social enterprise?

Any business must generate profit, irrespective of what it is engaged in. If the financial situation in your business has worsened, you should think whether your social entrepreneurship strategy is correct and whether you have a well thought-through answer to the question of why you went into business. In this case, it would be better to develop further your stable business and use the profit it generates to open a separate division or legal entity for a social project. You will need to carefully determine the exact percentage of profit to be used for this project, so that if it fails it won't affect the entire business.

Any business must generate profit, irrespective of what it is engaged in. If the financial situation in your business has worsened, you should think whether your social entrepreneurship strategy is correct and whether you have a well thought-through answer to the question of why you went into business. In this case, it would be better to develop further your stable business and use the profit it generates to open a separate division or legal entity for a social project. You will need to carefully determine the exact percentage of profit to be used for this project, so that if it fails it won't affect the entire business.

In most cases, business in the social sphere is not social entrepreneurship. For example, if a company works in the pharmaceuticals sector, it does work in the social sphere, however its mission is not to cure all patients and close. The objective of a social enterprise is to solve a specific social problem.

Yes, if its charter provides for this. In most instances such initiatives are supported by the state, as they help the organisation to become more independent from fundraising and more stable in a competitive environment where the receipt of state-funded or other grants is often unpredictable.

You can count on the same support that is provided to any other entrepreneur, depending on your form of incorporation. Certain forms of support are linked to the form of incorporation of your not-for-profit organisation or business. Not-for-profit organisations are offered some forms of grants and assistance, while businesses may take part in public procurement and tenders. You may become a supplier of social services for the state in accordance with the laws (around 34 services).

No, advertising conditions are the same for all entrepreneurs. However, this can be used as an opportunity to apply your skills in practice. For example, you can create a social advertisement or a television programme on social entrepreneurship. To do so, you'll need an interesting story, which can be transformed into an attractive media product. 

Crowdfunding is cooperation between people (donors) who combine their money or other resources voluntarily, usually via the Internet, to support the efforts of other people or organisations (recipients). Crowdfunding may have different purposes such as assistance to victims of a disaster, support from fans, support to political campaigns, financing of start-up companies and small-sized enterprises, developing free software, generating profit from joint investment, etc.

Crowdfunding first appeared when it became possible to pay for services in a simpler manner via the Internet and more people had the opportunity to transfer money using online platforms without difficulty and concern. It was triggered by the emergence of start-ups when, to launch the industrial manufacture of a product, a company needed to secure enough buyers and customers who would purchase it. However, creating a project on a crowdfunding platform to solve a social problem would not really have much of an effect. For this reason, crowdfunding should not be regarded as a strategic fundraising tool.

In most cases, these are the same as for other businesses. The only interesting difference is that when you purchase an ordinary product or service and don't like its quality, you most probably won't buy it for the second time. However, when you purchase something from a social entrepreneur you receive two in one – the product itself and the social effect created when you purchase it. In most instances even if a product is of low quality many consumers will give a second chance to the entrepreneur and buy it again because they understand that this purchase will still have a social effect.

The best route is to open a not-for-profit organisation and, in addition, a business in the form of individual entrepreneurship or a limited liability company.

The term social entrepreneurship is not fixed in the laws of Kazakhstan because the laws lack a list of social entrepreneurs. However, if created, the list of possible types of social enterprises can significantly narrow the framework of these activities and if new types of social enterprises appear there is a risk that we won't be able to apply the current laws to them and offer suitable market conditions. This issue is being discussed all over the world and South Korea is the only country where social entrepreneurship is covered by a law, which was adopted in 2007.